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As per the filing, total debt of Coffee Day Enterprises as on July 31, 2019 was Rs 3,472 crore. The company said its arm Sical Logistics has also been working on divestment of certain assets and that adjustments to the proceeds from the sale Global Village Tech Park in Bengaluru to Blackstone will lead to its debt dropping to Rs, 1000 crore

New Delhi: Café chain operator Coffee Day Enterprises on Saturday said its total debt is expected to reduce to around Rs 1,000 crore after adjusting the proceeds from sale of its Global Village Tech Park in Bengaluru to Blackstone.

"The company has already announced the divestment of Global Village Tech Park held by its subsidiary Tanglin Developments Ltd for an aggregate consideration of Rs 2,600-3,000 crore. On receipt of the consideration for the sale of Global Village after payment of required statutory payments, the debt position of Coffee Day Group will reduce around by Rs 2,400 crore," Coffee Day Enterprises said in a regulatory filing.

The debt position of Coffee Day Group post repayment of debt out of proceeds from sale of Global Village is expected to be around Rs 1,000 crore in the next 45 days, it added.

As per the filing, total debt of Coffee Day Enterprises as on July 31, 2019 was Rs 3,472 crore.

The company said its arm Sical Logistics has also been working on divestment of certain assets.

"The proceeds from the divestment is expected to significantly reduce the debt in Sical," Coffee Day Enterprises added.

Total debt of Sical Logistics is Rs 1,488 crore, it added.

The company said it is confident that the ongoing divestments will significantly reduce the debt position of Coffee Day Group.

"The financial position and asset base of the Coffee Day Group will be comfortable to service the debt obligations of the entire group in full. We reiterate that the debt obligations of the Coffee Day Group will be honoured. We request all the lenders and creditors to give sufficient time to honour the commitments and to unlock the true potential value of the assets," it said.

Last month, Coffee Day Enterprises founder VG Siddhartha allegedly committed suicide. In a letter purportedly written by him, Siddhartha mentioned "serious liquidity crunch" and "tremendous pressure" from lenders and an unnamed private equity investor, among other issues.